Adult social care is a sector under immense pressure. Prior to the pandemic, the Competition and Markets Authority’s 2017 report highlighted the financial fragility of the sector. It is clear that COVID-19 has exacerbated financial pressures on care homes, potentially leading to highly disruptive closures.
According to Real Business Rescue, resident numbers in Care homes have dwindled over recent months, leaving a huge gap in the cash flow of care homes. This is through a combination of relatives removing their loved ones from an environment they believe is risky, fewer new residents being admitted, as well as the rising number of deaths occurring every day in these establishments. If occupancy rates drop, care homes have very little way of plugging this gap in revenue.
Cynergy Bank started focusing on the healthcare sector from June 2021 supporting care homes by providing almost £100m in funding, £60m is already approved in 2022 and the funding supports a range of activities from refurbishing existing assets to refinancing.
Nick Fahy, CEO of Cynergy Bank commented, “The Pandemic has resulted in difficult times for many businesses, but care homes have had a particularly rough time. Unlike state-run NHS hospitals, care homes are, for the most part, privately owned and funded by way of residents’ fees. Some financial support is provided by local authorities; however, this is on a means-tested basis and as occupancy levels fall, so does this funding. At Cynergy Bank we are proud of the support we have given to this important sector responsible for the care of almost 500,000 elderly and vulnerable individuals across the country.”